CDC Software Expects Fourth Quarter 2010 Application Sales Growth of Approximately 22 Percent & 31 Percent Increase in Total ...
February 01 2011 - 8:00AM
Business Wire
CDC Software Corporation (NASDAQ: CDCS), a global provider of
hybrid enterprise software applications and services, today
announced that, based on current financial projections and
estimates, the Company expects its fourth quarter 2010 application
sales to be approximately $14.6 million, an increase of
approximately 22 percent compared to $12.0 million in the fourth
quarter of 2009.
Application sales is comprised of license revenue plus Secured
Total Contract Value (STCV) for Software-as-a-Service (SaaS) sales
secured during the fourth quarter of 2010.
Fourth quarter 2010 Total Contract Backlog (TCB) is expected to
increase about 31 percent to approximately $136.5 million, compared
to $104.4 million in the fourth quarter of 2009. TCB is defined as
the sum of the remaining revenue value of SaaS and term license or
rental contracts through the end of their respective term, the
value of contracted renewals for current SaaS and rental contracts
based on 12 months of value, and expected annual maintenance
revenues from existing on-premise contracts based on the rolling
average of the previous 12 months.
The company’s Pivotal CRM product line is expected to see a 21
percent increase in organic growth for the full year in 2010
compared to 2009. CDC Software’s CDC gomembers
not-for-profit/government sector product line and CDC TradeBeam’s
global trade management solutions are expected to report solid
growth in sales for the fourth quarter of 2010. Average deal size
for on-premise software licenses increased quarter over quarter in
2010 with a 31 percent increase expected in the fourth quarter
compared to the third quarter of 2010.
Sales in the Financial Services, Life Sciences, Manufacturing
and Not-for-Profit industries are also expected to report
significant growth for the year 2010 compared to the 2009.
“We are thrilled with expectations for double digit top line
growth in the fourth quarter of 2010,” said Bruce Cameron,
president of CDC Software. “For the fourth quarter of 2010, we
closed several new logo sales and we expect to report especially
strong sales growth in India, France and the U.K. We also are
expecting strong sales growth in our cloud products such as CDC
TradeBeam and CDC gomembers in the fourth quarter. Notably, we have
been seeing impressive progress and traction with our cloud
business so far in 2011 with the recent renewal and additional
upgrade of a multi-year and multi-million cloud deal with a
Fortune 1000 company. Another positive trend we have seen is that
our average deal size has been increasing, which seems in line with
the economy’s gradual improvement.”
Cameron added, “We believe that we are poised to continue our
growth, especially in our key product lines such as Pivotal and CDC
Factory. The company expects to continue to expand through organic
and cross-sell sales opportunities, as well as through synergistic
acquisitions and investments, in both the on-premise and SaaS
business models.”
About CDC Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a
hybrid enterprise software provider of on-premise and cloud
deployments. Leveraging a service-oriented architecture (SOA), CDC
Software offers multiple delivery options for their solutions
including on-premise, hosted, cloud-based Software as a Service
(SaaS) or blended-hybrid deployment offerings. CDC Software’s
solutions include enterprise resource planning (ERP), manufacturing
operations management, enterprise manufacturing intelligence,
supply chain management (demand management, order management and
warehouse and transportation management), global trade management,
e-Commerce, human capital management, customer relationship
management (CRM), complaint management and aged care solutions.
CDC Software’s recent acquisitions are part of its “acquire,
integrate, innovate and grow” strategy. Fueling the success of this
strategy is the company’s global scalable business and
technology infrastructure featuring multiple complementary
applications and services, domain expertise in vertical markets,
cost effective product engineering centers in India and China, a
highly collaborative and fast product development process utilizing
Agile methodologies, and a worldwide network of direct sales and
channel operations. This strategy has helped CDC Software deliver
innovative and industry-specific solutions to 10,000 customers
worldwide within the manufacturing, distribution, transportation,
retail, government, real estate, financial services, health care,
and not-for-profit industries. For more information, please visit
www.cdcsoftware.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995. These forward-looking statements include
statements regarding our beliefs and expectations regarding Q4 2010
application sales, our beliefs and expectations regarding increases
in total contract backlog (TCB), annual maintenance revenues, and
organic growth, as well as sales growth in our CDC gomembers and
CDC Tradebeam product lines, our expectations with respect to
increasing average deal size, our expectations regarding sales
growth in our financial services, life sciences, manufacturing and
not-for-profit industries, our cloud products and expected sales
growth in India, France and the U.K., our beliefs regarding any
trends we may see, our expectations regarding continued growth and
expansion and the means therefor, and other statements that are not
historical fact, the achievement of which involve risks,
uncertainties and assumptions. If any such risks or uncertainties
materialize or if any of the assumptions proves incorrect, our
results could differ materially from the results expressed or
implied by the forward-looking statements we make. These statements
are based on management's current expectations and are subject to
risks and uncertainties and changes in circumstances. There are
important factors that could cause actual results to differ
materially from those anticipated in the forward looking
statements, including the following: (a) the ability to realize
strategic objectives by taking advantage of market opportunities in
targeted geographic markets; (b) the ability to make changes in
business strategy, development plans and product offerings to
respond to the needs of current, new and potential customers,
suppliers and strategic partners; (c) the effects of restructurings
and rationalization of operations; (d) the ability to address
technological changes and developments including the development
and enhancement of products; (e) the entry of new competitors and
their technological advances; (f) the need to develop, integrate
and deploy enterprise software applications to meet customer's
requirements; (g) the possibility of development or deployment
difficulties or delays; (h) the dependence on customer satisfaction
with the company's software products and services; (i) continued
commitment to the deployment of the enterprise software solutions;
(j) risks involved in developing software solutions and integrating
them with third-party software and services; (k) the continued
ability of the company's enterprise software solutions to address
client-specific requirements; (l) demand for and market acceptance
of new and existing enterprise software and services, the
positioning of the company's and its partners’ solutions, as well
as the success of any of our strategies; (m) the ability of staff
to operate the enterprise software and extract and utilize
information from the company's enterprise software solutions; (n)
the continued cooperation of our strategic and business partners;
(o) risks relating to economic conditions and other matters beyond
our control; (p) the ability to complete and integrate any
acquisitions we may undertake; the potential impact of any
litigation or disputes in which we, or any of our subsidiaries or
affiliates are involved; and (r) the risk that the preliminary
financial results provided herein could differ from our actual
results. Further information on risks or other factors that could
cause results to differ is detailed in our filings or submissions
with the United States Securities and Exchange Commission,
including our Annual Report on form 20-F for the year ended
December 31, 2009, filed with the SEC on June 1, 2010, and those of
our ultimate parent company, CDC Corporation, located at
www.sec.gov. All forward-looking statements included in this press
release are based upon information available to management as of
the date of the press release, and you are cautioned not to place
undue reliance on any forward looking statements which speak only
as of the date of this press release. All estimates contained
herein regarding Q4 2010 performance and other periods, are based
upon preliminary financial projections, beliefs and estimates. The
company assumes no obligation to update or alter the forward
looking statements whether as a result of new information, future
events or otherwise. Historical results are not indicative of
future performance.
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